BRAZIL · ECONOMY

Petrobras said on Thursday it will buy back about US$1 billion of its own global bonds ahead of schedule. The redemption of Petrobras global bonds headlines a busy week in which the company also christened two offshore production giants and widened its credit lifeline to Braskem.

A Petrobras production vessel of the same P-series family that is now growing at the Búzios field. (Photo: Internet reproduction)

The early redemption of Petrobras global bonds

The company said its wholly owned subsidiary, Petrobras Global Finance, has sent redemption notices to bondholders. The notes in question are the 5.999 percent Global Notes maturing in 2028.

The principal being repaid totals US$1,080,945,000. Petrobras puts the size of the operation at roughly US$1 billion, excluding capitalised and unpaid interest.

The redemption will be priced on 22 September 2026. Settlement is scheduled for 25 September 2026.

The company framed the move as liability management. Paying the notes off early removes a fixed coupon of nearly 6 percent from the balance sheet two years before maturity.

It is at least the third early redemption of Petrobras global bonds in under a year. The company redeemed 8.750 percent notes due 2026 last December and announced another Petrobras global bonds buyback in May.

Two new production giants for Búzios

The same week brought a milestone on the production side. Singapore’s Seatrium christened two floating production, storage and offloading vessels, the P-80 and the P-82, at its Tuas Boulevard yard.

Both ships will sail to the Búzios field in the pre-salt area of the Santos Basin, off Rio de Janeiro. They will be the ninth and tenth production platforms deployed there.

Each vessel is designed to produce 225,000 barrels of oil per day and process 12 million cubic metres of gas per day. Together they add 450,000 barrels per day of capacity, an increase of about 34 percent for the field.

Búzios is Brazil’s largest field by reserves and production, and it has already passed 1.2 million barrels per day. Production from the two new units is scheduled to begin next year.

Seatrium built more than 110,000 tonnes of topside modules for the two projects across yards in Singapore, China and Brazil. The vessels include carbon capture and reinjection systems and other emissions-reduction technology.

Petrobras chief executive Magda Chambriard called the P-80 a giant platform for a giant field. Seatrium’s chief executive, Chris Ong, said the yard is now focused on offshore commissioning.

What Petroleo Brasileiro Petrobras does. Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil, China, the United States, the Americas, Asia, Europe, Singapore, and internationally. It operates through three segments: Exploration and Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies. The Exploration and Production segment explores, develops, and produces…

A bigger credit line for Braskem

The third move concerns Braskem, the petrochemical producer in which Petrobras holds a strategic stake. The two companies agreed on Monday to raise Braskem’s trade credit line with Petrobras from R$350 million (US$68 million) to R$2.35 billion (US$456 million).

The credit finances Braskem’s purchases of raw materials supplied by Petrobras. It keeps feedstock flowing while Braskem works through an out-of-court restructuring of roughly US$11 billion in debt.

The structure runs until December 2026 and carries several guarantees. They include an assignment of Braskem receivables, an escrow account of R$300 million (US$58 million) and rights tied to a tax lawsuit estimated at R$2.7 billion (US$524 million).

Investors welcomed the news. Braskem shares rose more than 14 percent on the São Paulo stock exchange after the announcement.

What it adds up to

Taken together, the three moves show a company using a strong cash position on several fronts. Debt is being cut early, production capacity is expanding, and a key industrial partner is being kept supplied.

For holders of Petrobras global bonds, the practical date is 22 September, when the redemption price is set. For Brazil’s oil output, the bigger date is 2027, when the P-80 and P-82 start producing.

Frequently Asked Questions

Sources: Petrobras statement via Estadão, InfoMoney and InvestNews; Seatrium via Offshore Energy; Valor Econômico, UOL Economia and Bloomberg Línea (Braskem credit line).

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